|12 Months Ended|
Dec. 31, 2014
|Marketable Securities [Abstract]|
NOTE 5. MARKETABLE SECURITIES
A summary of marketable securities, all of which are classified as current, was as follows:
(1) The fair value of Level 1 securities is estimated primarily by referencing quoted prices in active markets for identical assets.
(2) We revised 2013 balances to classify $72 million as Level 2 assets instead of Level 1.
(3) In the first quarter of 2013, we realized a $9 million gain on the sale of equity securities.
(4) The fair value of Level 2 securities is estimated primarily using actively quoted prices for similar instruments from brokers and observable inputs, including market transactions and third-party pricing services. We do not currently have any Level 3 securities, and there were no transfers between Level 2 or 3 during 2014 and 2013.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. We primarily apply the market approach for recurring fair value measurements and utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observability of those inputs. The fair value hierarchy prioritizes the inputs used to measure fair value giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). At December 31, 2014, we did not have any Level 1 or Level 3 financial assets or liabilities.
A description of the valuation techniques and inputs used for our Level 2 fair value measures was as follows:
The proceeds from sales and maturities of marketable securities and gross realized gains from the sale of AFS securities were as follows:
(1) Gross realized losses from the sale of available-for-sale securities were immaterial.
At December 31, 2014, the fair value of available-for-sale investments in debt securities that utilize a Level 2 fair value measure is shown by contractual maturity below:
Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.
Reference 1: http://www.xbrl.org/2003/role/presentationRef